Mean Reversion is a statistical phenomenon in which extreme events are followed by those closest to the mean. In this post, I'll use regression, mean reversion, and reversion to mean the same term. Don't get confused. To understand regression to the mean, you must first understand
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Mean Reversion
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Mean Reversion is a statistical phenomenon in which extreme events are followed by those closest to the mean. In this post, I'll use regression, mean reversion, and reversion to mean the same term. Don't get confused. To understand regression to the mean, you must first understand